New credit advertising rules come into force

Starting next week, stricter requirements for advertising credit products will come into effect. Lenders will not be able to use an attractively low rate without focusing on the conditions for obtaining it and the full cost of the loan. The Central Bank explicitly reminded banks of the entry into force of such amendments to the legislation. Experts believe that as a result, bankers will begin to actively promote brands in general, although some lenders may simply include the cost of future fines in advertising costs.

Central Bank publicly reminded banks about joining next week amendments to the Law “On Consumer Credit (Loan)”, concerning requirements for advertising of credit products. Thus, lenders will be required to indicate in any advertising (on the website, in the mobile application and in the office) next to the rate range and the range of total loan cost (FLC) values, and in the same font.

“Now lenders will not be able to use an attractively low rate in advertising without focusing the consumer’s attention on the conditions for receiving it or on the limited validity period of the offer,” emphasizes Alexandra Pozharskaya, an expert on the Popular Front project “For Borrowers’ Rights.” Knowing not only the best, but also the worst conditions, the borrower will be “more conscious when choosing a product,” she believes.

Bankers are reserved in their comments. Some of the respondents only admit that there was enough time to adjust the advertising materials and the changes were not unexpected for the market, but the majority did not respond to Kommersant’s requests. Only PSB assured: “By the time the amendments come into force, all advertising products will be adjusted and brought into compliance with the requirements of the law.”

Changing advertising concepts will require additional costs. As NMi Group notes, replacing advertising on the Internet involves the need to obtain new tokens, transfer data to advertising data operators (ADOs), and change content and links on sites.

This also applies to outdoor advertising: replacing it will entail additional costs for printing and installation. Replacing commercials on television is not a complicated or expensive process, NMi Group notes. Compared to the overall marketing budget, the costs of replacing content seem insignificant, and given the time allotted, advertisers could make replacements on time and without additional financial costs, experts say.

At the same time, in the first half of the year there was an increase in advertiser spending on promoting financial products. According to NMi Group, “in the categories of credit cards and consumer loans, the top 10 advertisers in the finance segment spent 9% and 7% more year-over-year.”

During the period allotted for the seizure of all advertising products that do not comply with the new rules, many market players have already intensified general advertising of their brand with mention of a wide range of opportunities for clients, notes Alexandra Pozharskaya.

However, experts are also waiting for the emergence of “original ways of presenting” advertising materials. Pen & Paper senior lawyer Svyatoslav Orlov admits that the loan rate will begin to be written in small font, and clients will be attracted using another element of the service.

The fine for violations of the law is up to 800 thousand rubles.and the FAS has already assured that they try to impose the maximum punishment in such cases.

“But this does not reduce the number of borrowers, which means that the margin from attracted clients most likely covers the losses from administrative fines,” clarifies Mr. Orlov. Some advertisers, says Maxim Ali, a partner in Comply’s intellectual property practice, do not hide the fact that they simply “put the amount of fines into the budget.”

Polina Trifonova, Yulia Yurasova